Gold prices eased on Wednesday after crossing the key $1,600 level in the previous session, as global shares climbed in cautious trade following a slight dip in new coronavirus cases, while palladium hit a fresh peak on supply issues.

FUNDAMENTALS

Spot gold was down 0.1 per cent at $1,600.67 per ounce, as of 0037 GMT. In the previous session, bullion prices surged 1.3 per cent to their highest since Jan. 8 at $1,605.10.

US gold futures remained unchanged at $1,603.60.

New coronavirus cases in the Chinese province at the epicentre of the outbreak fell for a second straight day to 1,693, but deaths rose after the World Health Organization had cautioned there was not yet enough data to know if the epidemic had slowed.

Asian shares and US stock futures edged cautiously higher on Wednesday as investors tried to shake off worries about the epidemic.

Providing a fillip to investor confidence was China's decision to grant exemptions on retaliatory duties imposed against 696 US goods, the most substantial tariff relief to be offered so far, as Beijing seeks to fulfill commitments made in its interim trade deal with the United States.

On Feb. 17, Chinese policymakers had also implemented a raft of measures to support an economy jolted by a coronavirus outbreak that is expected to have a devastating impact on first-quarter growth.

A federal judge in Texas rejected Chinese telecommunications equipment maker Huawei Technologies Co Ltd's constitutional challenge to a US law that restricted its ability to do business with federal agencies and their contractors.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust holdings rose 0.63 per cent to 929.84 tonnes on Tuesday.

Palladium inched up 0.2 per cent to $2,641.02 an ounce. Earlier in the session, the auto-catalyst metal touched a record high of $2,669.00.

Silver was trading flat at $18.17, while platinum rose 0.5 per cent to $996.20.